Bankruptcy Lawyer Near Me Elgin IL – ASM Law
Debts can seem overwhelming and cause homeowners a lot of stress. At ASM Law, we specialize in helping Illinois residents find solutions to their debt worries and restore their finances. If you’re finding it hard to make your monthly payments and get a handle on your debts, call ASM Law. In our initial free consultation, we’ll assess your situation and recommend if bankruptcy is a possible solution for you. Read on to learn more – on this post we present some useful answers to FAQs about bankruptcy.
-Will I be able to keep my residential property if I file for bankruptcy?
The answer is yes if you file for a Chapter 13 bankruptcy. In this common form of filing, you’ll need to repay some or all of your debts. Usually, this is done through a payment schedule that takes place over three to five years. As part of that, you’ll be able to retain your home. Certainly, this depends on staying on schedule with the payment plan. Additionally, the payment plan must assure that your creditors receive as much as they would through a Chapter 7 bankruptcy. For example, if you have real estate with a value of $10,000, your payment plan must pay your creditors at least that amount.
In a Chapter 7 filing, you’re asking a bankruptcy court to discharge many of your existing debts. In exchange for that, the bankruptcy trustee may take any of your property that’s not exempt. They can sell the property and forward the proceeds directly to creditors. State law governs what type of property is exempt. Usually, exemptions include the equity in the home and vehicles, retirement funds and many household items. For instance, furniture, clothing and appliances are typically exempt.
ASM Law – Bankruptcy Lawyer for Kane County – Bankruptcy Lawyer Near Me Elgin IL
-Will bankruptcy allow me to keep my home if I’m facing foreclosure?
A Chapter 13 filing offers an effective way to prevent foreclosure. It enables you to catch up on late mortgage payments through a payment plan that the court approves. However, for this plan to succeed, you must have sufficient income that allows you to make mortgage payments. These must stay on schedule while you also pay the late fees.
In a Chapter 7 filing, if there is adequate equity in your home, a bankruptcy trustee sells it to your creditors. However, this depends upon current real estate market conditions. Chapter 7 does not provide a way to get current if you’re already behind on mortgage payments. The lender will typically obtain permission from the bankruptcy court to proceed with foreclosure. Your Bankruptcy Lawyer Near Me Elgin IL can explain what takes place with your home in a Chapter 7 filing.
ASM Law – Foreclosure Lawyer for Homeowners in Elgin
You’ll certainly want to explore alternatives to bankruptcy if you main goal is to keep your home. It may be possible to talk with your lender regarding payment of arrearages. Or, you may be able to receive government assistance to modify the terms of your loan.
-Is Chapter 7 bankruptcy an option if I’m unemployed and in debt? If it’s likely you’ll incur a lot of debts sooner rather than later, it’s wise to wait before filing for Chapter 7. While bankruptcy discharges some of your debts, it does not discharge debts you incur after filing. Since you cannot file again for eight years after a debt discharge, you’ll carry those debts for quite a while.
-Will a bankruptcy filing put an end to harassing calls from creditors?
Indeed, bankruptcy offers protection against those nonstop calls from collection agencies. However, this applies only to debt collection calls. Creditors may still contact you.
Learn More About Bankruptcy and If It’s Right for Your Situation – ASM Law
-Does bankruptcy cancel all my debts?
This depends upon which type of debts you carry. Bankruptcy is an effective means of eliminating debts like credit cards, medical bills or deficiencies that result from foreclosure. These types of debt are known as unsecured. A Chapter 7 bankruptcy filing discharges these unsecured debts at the conclusion of your bankruptcy. With a Chapter 13 filing, you might need to pay some of your unsecured debts through a repayment schedule.
Bankruptcy does not discharge other types of debt such as child and spouse support or student loans. Additionally, it doesn’t wipe out tax debts due during the previous 3 years. Ask your Bankruptcy Lawyer Near Me Elgin IL about which of your debts a bankruptcy may eliminate.
-What Does an Automatic Stay Do?
Upon filing for bankruptcy, the court issues an order known as an automatic stay. A stay immediately halts the majority if civil lawsuits against you. Also, it stops most collection activities against your property by collection agencies and creditors. For that reason, an automatic stay might provide a good reason to consider bankruptcy. Note that bankruptcy may temporarily or in some cases permanently help prevent eviction or foreclosure. An automatic stay can be an effective remedy if you’re facing any of these typical emergencies:
-Eviction. If you’re at risk of eviction from your residence, an automatic stay can offer some protection. However, it’s temporary in most situations. If there is a judgment of possession against you already, the automatic stay will not block eviction. Your landlord will be able to continue regardless of your bankruptcy status. In some cases, an automatic stay can buy you a few weeks perhaps. The landlord, though, will likely ask the court to remove the stay so eviction can proceed.
Bankruptcy Can Eliminate Debts – Get Bank On Your Feet Financially
-Disconnection of utilities. It’s not uncommon for people in financial trouble to fall behind on their electric, gas or water bills. Fortunately, an automatic stay can prevent disconnection of those utilities for 20 days or longer. Owing utility bills is usually not a sole cause for filing bankruptcy. Nevertheless, it can be sensible to file if there are other debts to discharge. Consequently, utility companies may require a deposit to assure payment in the future.
-Home foreclosure. An automatic stay can prevent foreclosure on your home. But what takes place next, however, depends mainly upon which bankruptcy chapter you file. For example, Chapter 13 is typically the better choice for those who want to keep their home. It allows the borrower a way of catching up on their payments through a three to five year plan. On the other hand, a Chapter 7 filing does not feature a repayment plan option to retain the home. In that case, the relief from an automatic stay is only temporary.
-Wage garnishments. A bankruptcy filing ceases most efforts at wage garnishment right away. You’ll be able to take home your full pay, yet bankruptcy will discharge most debts that qualify. For instance, debts like overdue credit card balances or personal loans. As we mention above, bankruptcy does not discharge debts like spousal or child support payments. What takes place with late support payments and taxes depends upon which bankruptcy chapter you choose.
The protections that a bankruptcy filing offers can provide the chance for a fresh new financial start. Our law firm helps people from all walks of life who are facing financial struggles just like you. The sooner you reach out for help, the sooner you can start recovering.
Talk with a Bankruptcy Lawyer Near Me Elgin IL today! We’ll recommend if bankruptcy is right for your situation and – if so – guide you through the process.